Loans by Type (Tables)

9 Months Ended

Sep. 30, 2023

A summary of loans is as follows:


(In thousands)	September 30, 2023		December 31, 2022
Commercial and industrial	$	517,310	$	561,616
Real estate:
Commercial:
Mortgage	115,742		108,166
Construction	21,101		17,874
Faith-based:
Mortgage	376,186		387,114
Construction	9,249		8,094
Other	31		42
Total loans	$	1,039,619	$	1,082,906

Schedule of Debt

The following table presents the aging of loans past due by category at September 30, 2023 and December 31, 2022:


	Performing						Nonperforming
(In thousands)	Current		30-59 Days		60-89 Days		90 Days and Over		Non- accrual		Total Loans
September 30, 2023
Commercial and industrial	$	517,310	$	—	$	—	$	—	$	—	$	517,310
Real estate
Commercial:
Mortgage	115,742		—		—		—		—		115,742
Construction	21,101		—		—		—		—		21,101
Faith-based:
Mortgage	376,186		—		—		—		—		376,186
Construction	9,249		—		—		—		—		9,249

Other	31		—		—		—		—		31
Total	$	1,039,619	$	—	$	—	$	—	$	—	$	1,039,619
December 31, 2022
Commercial and industrial	$	560,466	$	—	$	—	$	—	$	1,150	$	561,616
Real estate
Commercial:
Mortgage	108,166		—		—		—		—		108,166
Construction	17,874		—		—		—		—		17,874
Faith-based:
Mortgage	387,114		—		—		—		—		387,114
Construction	8,094		—		—		—		—		8,094

Other	42		—		—		—		—		42
Total	$	1,081,756	$	—	$	—	$	—	$	1,150	$	1,082,906

Schedule of Credit Exposure of the Loan Portfolio

The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of September 30, 2023 and December 31, 2022:


(In thousands)	Loans Subject to Normal Monitoring1		Performing Loans Subject to Special Monitoring2		Nonperforming Loans Subject to Special Monitoring2		Total Loans
September 30, 2023
Commercial and industrial	$	517,310	$	—	$	—	$	517,310
Real estate
Commercial:
Mortgage	115,742		—		—		115,742
Construction	21,101		—		—		21,101
Faith-based:
Mortgage	372,708		3,478		—		376,186
Construction	9,249		—		—		9,249

Other	31		—		—		31
Total	$	1,036,141	$	3,478	$	—	$	1,039,619
December 31, 2022
Commercial and industrial	$	549,241	$	11,225	$	1,150	$	561,616
Real estate
Commercial:
Mortgage	108,166		—		—		108,166
Construction	17,874		—		—		17,874
Faith-based:
Mortgage	386,169		945		—		387,114
Construction	8,094		—		—		8,094

Other	42		—		—		42
Total	$	1,069,586	$	12,170	$	1,150	$	1,082,906


1 Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligations.
2 Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention.

Financing Receivable, Troubled Debt Restructuring

The following table shows the amortized cost of loans at September 30, 2023 that were both experiencing financial difficulty and modified during the nine months ended September 30, 2023, segregated by category and type of modification.


(In thousands)	Payment Delay		Term Extension		Interest Rate Reduction		Combination Term Extension and Interest Rate Reduction		Percentage of Total Loans Held for Investment
September 30, 2023
Commercial and industrial	$	—	$	10,709	$	—	$	—	2.07	%









Total	$	—	$	10,709	$	—	$	—	1.03	%

The following table shows the performance of loans that have been modified to borrowers experiencing financial difficulty during the nine months ended September 30, 2023.


(In thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due
September 30, 2023
Commercial and industrial	$	10,709	$	—	$	—	$	—	$	—









Total	$	10,709	$	—	$	—	$	—	$	—

Summary of ACL by Category

A summary of the activity in the allowance for credit losses (“ACL”) by category for the nine month period ended September 30, 2023 and year-ended December 31, 2022 is as follows:


(In thousands)	C&I		CRE		Faith-based CRE		Construction		Total
Balance at December 31, 2021	$	5,034	$	1,031	$	5,684	$	292	$	12,041
Provision for (release of) credit losses	931		(91)		753		(108)		1,485
Recoveries	13		—		—		—		13
Balance at December 31, 2022	$	5,978	$	940	$	6,437	$	184	$	13,539

(Release of) provision for credit losses (1)	(275)		72		(48)		31		(220)
Recoveries	—		—		—		—		—
Balance at September 30, 2023	$	5,703	$	1,012	$	6,389	$	215	$	13,319


(1)			For the nine month period ended September 30, 2023 and year-ended December 31, 2022, there was a release of credit losses of $115,000 and $135,000, respectively, for unfunded commitments.